SpiceJet posts Rs 164-cr loss on dearer fuel, weak rupee

Optimistic on Govt’s efforts to address issues

Chennai, Nov. 12:  

Budget carrier SpiceJet has posted a net loss of Rs 163.52 crore for the quarter ended September 30 against a loss of Rs 240 crore in the comparable previous year period.

However, turnover has gone up 57 per cent to Rs 1,207 crore from Rs 766 crore last year.

After five consecutive quarters, the airlines posted a net profit of Rs 56 crore in the first quarter of the current financial year.

Neil Mills, CEO of the company, attributes the net loss in the second quarter to fuel prices and other levies.

“Fuel costs and the weakened rupee continue to be a cause of worry for the aviation sector.

“But we are extremely encouraged by the fact that the Union Government is proactively addressing the several pain points that torment the struggling civil aviation industry.

“We hope to see better days in the near future,” he said in a statement.

International crude prices, which saw some reduction during the previous quarter, firmed up and threatened to get close to the previously recorded highs, although there are some signs of stability at lower levels now.

Fuel as a proportion of revenues was at 53 per cent, as against a comparable ratio of 62 per cent last year.

New stations

The sharp improvement in efficiency was due to better pricing discipline adopted by the company and redeployment of aircraft on to more profitable routes.

During the quarter, SpiceJet opened up several new stations such as Chandigarh, Amritsar, Hubli, Dehradun and Jabalpur within the country and Kabul internationally.

According to its regulatory filing, the company has said the average realisation per passenger increased by 37 per cent to Rs 4,001 during the quarter under consideration, against Rs 2,920 registered during the same period last year.

It also posted 15.9 per cent growth in number of passengers and 48 per cent growth in number of departures during the quarter.

According to the release, SpiceJet with a market share of 18.5 per cent has become the third largest airline in domestic skies.

http://www.thehindubusinessline.com/todays-paper/tp-corporate/spicejet-posts-rs-164cr-loss-on-dearer-fuel-weak-rupee/article4091520.ece